But all signs point to Fire TV as a dependable gaming platform. Its cheap price and future prospects, together with Amazon's dedication to creating games, will ensure that Fire TV becomes a competitor to the PlayStation 4 and Xbox One.

The price angle Amazon's full-year 2013 operating income of $745 million was 10% higher than 2012's $676 million. The company's revenue was driven, at least in part, by undercutting rivals, and it is keeping to that strategy with the Fire TV. At $99 (plus $39 for the controller), the device is much less expensive than the PlayStation 4 ($399) and Xbox One ($499). Meanwhile, Gartner says the worldwide video game marketplace will reach $111 billion by 2015, up from $79 billion in 2012, which means the Fire TV has an opportunity to exploit a rapidly growing market.

Future prospects Amazon forecasts sales of $18.2 billion to $19.9 billion in the first quarter. Amazon's statement that the Fire TV is not just a gaming console is a very important one.Phones, smart televisions, and video streaming devices are becoming important in the gaming sector. Analysts say Fire TV gives users a viable option for playing mobile games on a television. This could allow Amazon steal away some of the console audience. Gartner says the video game console market will reach $55 billion in 2015. Since Amazon has the elements necessary to provide a basic gaming experience, it could court consumers away from dedicated console offerings.

Amazon and game developers Game titles drive sales. In addition to improving its hardware, Amazon wants to produce quality game exclusives. Consequently, the company has been working with video game developers after the acquisition of Double Helix Games. According to Cisco, global online video users are expected to grow from 1.1 billion in 2012 to nearly 2 billion by 2017. Needless to say, if Amazon has many developers with strong titles in its network, it should be able to tip many future users in its direction.

CompetitorsSony's games business recorded sales of $4.35 billion in the third quarter of fiscal 2013. The launch of the PlayStation 4 was responsible for a significant proportion of those sales. Sony also recently partnered with NASA to develop new virtual reality technology for the product. Because of initiatives like these, DFC Intelligence forecasts that PlayStation 4 could hit 100 million units sold by 2020.

In the second quarter of fiscal 2014, Microsoft sold 7.4 million units of its Xbox title. Due to the rise in sales of Xbox and other products, Microsoft announced revenue of $24.52 billion, up from $21.5 billion for the second quarter of the 2013 full-year. Microsoft is partnering with British TV network Channel 4 to sustain the momentum of Xbox One sales. The arrangement will lead to the production of an eight-episode series about humanoid robot workers to increase sales. Gartner predicts that sales of existing console hardware will rise from $15.9 billion in 2013 to $22.7 billion in 2015.

Foolish takeaway In the fourth quarter, Amazon's posted net income of $239 million, compared with $97 million in the same quarter a year earlier. Fire TV's cheap price, future prospects, and incoming games will guarantee sales. These qualities will also enable the product to compete with the PlayStation 4 and Xbox One, and help boost Amazon's business.

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My PS4 has the same apps as my Bluray and SmartTV...I don't turn on my PS4 to use them, I turn my PS4 on to play games on, then turn it off when done playing.

Who the hell is going to keep their game system on to watch TV instead of letting it cool down? Idiots wanting to end up buying a replacement system sooner is who.

The very idea that consoles are a threat to Amazon Fire is nuts, they are not the same market. This reminds me of Microsoft and their idiocy about how the mobile and PC markets are the SAME, just because they share some components.